HTC Q2 profit down by 58 percent

by IDG Reporter8 Jul 2012July 8, 2012

HTC’s second-quarter net profit dropped 58 percent year on year, the company reported Friday, a sign that its newest smartphones are not doing as well as it hoped.

The Taiwanese smartphone maker made net profit of NT$7.4 billion (US$248 million) in the second quarter, down from NT$17.5 billion a year earlier. HTC’s revenue for the quarter was also down, by 27 percent year on year, at NT$91 billion.

The company has reported net profit declines for three straight quarters, brought on by increased competition from Samsung and Apple.

HTC, however, had expected to see its second-quarter earnings stabilise at last year’s level with the introduction of its new HTC One series of smartphones. The company had previously lacked a definitive flagship device, which hurt its competitive edge, according to research firms.

But in June, HTC revised its revenue forecast, bringing it down from NT$105 billion to NT$91 billion. The company attributed this to lower anticipated sales in Europe, along with delayed shipments of smartphones to the U.S., the result of its patent battles with Apple.

Tahawul Tech21 Nov 2017November 29, 20170 182We’re giving away one Huawei Fit Band, a high-tech fitness watch with up to 6 days of battery life that …

GET TAHAWUL TECH IN YOUR INBOX

The free newsletter covering the top industry headlines

Tahawul Tech is the definitive platform in the Middle East for IT content. Covering stories across enterprise technology, cybersecurity and the region’s IT channel industry, Tahawul Tech brings business leaders and technology decision makers together to share their stories of transformation.